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Enactment of Ministerial Ordinances for Partially Amending the Enforcement Regulations of the Law for the Recycling of End-of-Life Vehicles

August 8, 2003

Ministerial ordinances partially amending the enforcement regulations of the
Law for the Recycling of End-of-Life Vehicles (hereinafter referred to as "End-of-Life
Vehicle Recycling Law") were enacted on August 1, 5 and 8, 2003.
These ministerial ordinances are intended to make necessary amendment for the
enforcement of the law.

<Overview of the End-of-Life Vehicle Recycling Law>

The End-of-Life Vehicle Recycling Law aims to establish a new recycling system for the proper processing and disposal of end-of-life vehicles and their efficient use as resources. While maximizing the use of existing recycling channels, the law provides a clearly-delineated division of roles among stakeholders, including auto manufacturers.

The law was promulgated in July 2002. The first-phase enforcement of the law (provisions on definitions and the responsibilities of all parties concerned) shall take effect within six months following its promulgation (January 11, 2003). The second-phase enforcement of the law shall take effect within two years after its promulgation (July 1, 2004). This will include the issuance of permits to dismantling works, etc.
The law shall take effect fully within two years and six months after its promulgation (January 1, 2005).

<Establishment of cabinet and ministerial ordinances>

The Central Environment Council and the Industrial Structure Council held joint meetings to discuss the contents of the cabinet and ministerial ordinances, which provide the details of the End-of-Life Vehicle Recycling Law scheme. The Councils completed discussions and compiled their final decision on June 24, 2003.
The Ministry of the Environment and the Ministry of Economy, Trade and Industry solicited public comments on the final decision, and formulated cabinet and ministerial ordinances, taking the public response into consideration. The cabinet ordinances were promulgated on July 25 and August 1, 2003.

<Major contents of the ministerial ordinances>

[First-phase enforcement] (Effective on August 1, 2003 by the announcement in the official gazette)

Chapter 6 of the law (Designated Corporations)

·

Stipulates business rules that need to be established by designated corporations (capital management corporation, designated recycling organization, and information management center).

·

Stipulates procedures that designated corporations must follow in order to obtain approval of their business plans, methods for business reporting, etc.

[Second-phase enforcement] (Announced in the official gazette on August 5, 2003)

(i)

Chapter 2 of the law (Implementation of Recycling, etc.)
Stipulates the methods for announcing recycling fees to be used by auto manufacturers and others, including the Internet and daily newspapers.

(ii)

Chapter 3 of the law (Registration and Issuance of Permits)
Stipulates criteria for the issuance of permits to dismantling and shredding businesses, which include the capability of the operators and their facilities.

(Dismantling Business)

·

Stipulates that dismantling operators must have a site equipped with, as a rule, a roof, concrete floor, oil skimmer, etc., in order to prevent runoff and spillage of waste oil, etc.

·

Stipulates that standardized work instructions detailing dismantling processes must be prepared and made known to the workers.

(Shredding Business)

·

Stipulates that operators should have shredding facilities with capacity to operate properly from the perspective of living environment conservation, and shredder residue storage facilities with, as a rule, a concrete floor that can prevent runoff and spillage of wastewater, etc.

·

Stipulates that standardized work instructions detailing shredding processes must be prepared and made known to the workers.

·

Stipulates procedures, including the formats of various application forms.

(iii)

Chapter 4 of the law (Recycling Fees)
Stipulates procedures for designated corporations to announce various fees, upon approval of the competent minister.

[Complete enforcement] (Announced in the official gazette on August 8, 2003)

(i)

Chapter 2 of the law (Implementation of Recycling, etc.)Stipulates recycling standards for dismantling and shredding operators.

(Dismantling operators)

·

Stipulates that efforts should be made to recover and sort reusable parts in ways that are technologically and financially viable, and that lead-acid storage batteries, tires, waste oil, etc. should be collected.

(Shredding operators)

·

Stipulates that efforts should be made to recover and sort iron, aluminum, etc. in ways that are technologically and financially viable, and that automobile shredder residue should not be mixed with residue from other things.

The recycling rate of end-of-life vehicles will reach 95% when the recycling rate of shredder dust reaches 70%.

(ii)

Registration of collection operators and CFC recovery operators
Stipulates that registration standards and application procedures should be carried out in line with the provisions of the Law concerning the Recovery and Destruction of Fluorocarbons (hereinafter referred to as "Fluorocarbons Recovery and Destruction Law").

(iii)

Chapter 4 of the law (Recycling Fees)
Stipulates procedures for the payment of recycling fees, etc. to be paid when auto manufacturers carry out recycling.

(iv)

Chapter 5 of the law (Reporting of Transfer)
Stipulates matters pertaining to reporting by related business operators using the electronic manifest.

<Major contents of the cabinet ordinances>

[Cabinet ordinances stipulating the enforcement dates of the law] (Announced in the official gazette on July 25 and on August 1, 2003)

·

Stipulates that the dates for the second-phase enforcement and the complete enforcement shall fall on July 1, 2004 and January 1, 2005, respectively.

[Cabinet ordinance for the second-phase enforcement] (Announced in the official gazette on July 25, 2003)

(i)

Chapter 3 of the law (Registration and Issuance of Permits)

·

Stipulates that permits for dismantling and shredding businesses shall be renewed every five years.

·

Stipulates environment-related laws and regulations applicable, in the case of violation, to the withdrawal of permission for dismantling and other business operations, as stipulated in the Waste Management and Public Cleansing Law.

(ii)

Chapter 4 of the law (Recycling Fees)

·

Stipulates procedures for obtaining the approval of the competent minister for various fees that can be collected by designated corporations.

(iii)

Chapter 5 of the law (Reporting of Transfer)

·

Stipulates procedures for obtaining the approval for handling fees related to submitting a written report of transfer.

(iv)

Chapter 6 of the law (Designated Corporations)

·

Stipulates that islands that can be the subject of support measures for the collection of end-of-life vehicles shall be those designated by laws relating to remote island development.

(v)

Chapter 7 of the law (Miscellaneous Rules)

·

Stipulates matters related to the inspection and collection of reports from related operators by the competent minister and prefectural governors.

(vi)

Other

·

In supplementary provisions, it is stipulated that the Cabinet Ordinance concerning the Standard of Handling Fees Charged by Local Governments be amended. Also stipulated is the standard fee that local governments can collect when issuing permits to dismantling operators.

[Cabinet ordinance for the complete enforcement] (Announced in the official gazette on August 1, 2003)

(i)

Chapter 5 of the law (Reporting of Transfer)

·

Stipulates acceptance procedures when a collection operator employs electronic data instead of written statements when communicating with end users.

(ii)

Chapter 7 of the law (Miscellaneous Rules)

·

Stipulates standards for the related business operators when consigning the collection and transportation of end-of-life vehicles, which are domestic waste, to other parties.

(iii)

Other

·

In the supplementary provisions, it is stipulated to amend the enforcement ordinance of the Fluorocarbons Recovery and Destruction Law to delete the provision concerning car air conditioners, since they will be regulated by the End-of-Life Vehicle Recycling Law.